A.I.M. Users Bulletin Board

[ls7550]

I tried to write the AIM method in a single line of algebra

N = Portfolio Control divided by Number of Shares

For AIM next sell calculate S = 1 - SAFE - Minimum Trade Size %
i.e. 10% safe, 5% Minimum Trade Size S = 1 - 0.1 - 0.05 = 0.85

For AIM next buy calculate B = 1 + SAFE + Minimum Trade Size %
i.e. 10% safe, 5% Minimum Trade Size B = 1 + 0.1 + 0.05 = 1.15

Next Sell Price = N / S
Next Buy Price = N / B

Brief description of AIM :

Start with some stock and some cash (perhaps a 80-20 split of each for instance)
Initially set Portfolio Control (PC) = stock value (SV)
Each month you check your AIM
If your PC is larger than SV, then AIM is considering buying T = PC - SV - 0.1 x SV
If your SV is larger than PC, then AIM is considering selling T = SV - PC - 0.1 x SV
Only actually trade if T exceeds some minimum capital amount, perhaps 10% of SV
Each time you BUY additional shares, increase PC by 0.5 x T (PC remains the same after each sell).
Don't trade too often, review or trade at most once each month.